Tackling supplier engagement challenges: Unlocking transparency and sustainability

In today’s business landscape, achieving transparency and sustainability in chemicals management is more critical than ever. However, many businesses struggle with poor supplier engagement and therefore a lack of chemical transparency, which prevents them from meeting key chemicals management and sustainability goals.  

To understand these challenges, Enhesa Sustainable Chemistry surveyed over 300 chemicals management professionals. The results revealed a significant gap in integrating sustainable chemistry into everyday chemicals management practices, often a result of poor supply chain visibility and insufficient chemical information.  

This article explores two key challenges within supplier engagement and offers actionable steps to address these issues, drawing on insights detailed in our report The risk-opportunity divide: Closing the chemicals management gap with sustainable chemistry.

Why supplier engagement matters

According to our survey, chemicals management professionals prioritize three ‘most critical’ goals when striving to use safer and more sustainable chemicals: 

• 65%: Staying compliant with chemicals regulations  

• 55%: The protection of workers, consumers, and the environment 

• 53%: Safeguarding the business from penalties and scandal related to chemical use  

Reaching these goals requires chemical transparency — which can only be achieved with supply chain transparency.  

Effective supplier engagement is therefore essential if businesses are to have a clear understanding of the chemicals used in their products and processes. 
 

Challenge #1 — obtaining complete chemical data 

Despite the clear need for supply chain transparency, it remains a key pain point for chemicals management professionals.  

In our survey, many businesses said they struggle with incomplete or insufficient chemical information from suppliers. With only a limited knowledge of the chemicals used in their products and processes, businesses are prevented from identifying and eliminating current or potential hazards, and adopting safer and more sustainable alternatives.  

• 71% of respondents highlighted inconsistent supplier responses as a major challenge 

• 64% noted they only receive partial data even when suppliers do respond to requests  

This indicates that businesses are lacking crucial chemical information and are dissatisfied with their current supplier engagement. 

For two-thirds of businesses, the chemical information gap hampers their ability to choose safer chemicals and products in their sourcing decisions, and to confidently understand hazard profiles. 
 

Challenge #2 — limited staff and tools 

Obtaining comprehensive chemical data requires companies to contact and gather data from an extensive network of suppliers. This supplier engagement process is time-consuming and resource-intensive.  

In our survey, many businesses said they struggle with limited resources and staff to deal with this volume of work. The absence of an accessible, centralized system for inputting data further complicates these efforts.  

• 23% specified a lack of staff and resources as a hindrance to dealing with all of their suppliers   

• 19% are challenged by the lack of an accessible-to-all single source for inputting information 

Additionally, 70% of respondents noted that resource constraints overall prevent the integration of sustainable chemistry practices, which includes proactively examining the chemicals used, and embracing transparency.

How to address supply chain engagement challenges

The above challenges are widening the gap between sustainable chemistry and effective chemicals management. They make it more difficult for companies to identify problematic chemicals, conduct effective assessments, and source safer alternatives. This can lead to financial and reputational risks triggered by non-compliance with regulations.  

To bridge this gap, it’s essential to find practical solutions that boost supplier engagement and improve supply chain transparency — by improving communication, relationships, and data sharing.  

Supplier engagement is crucial for achieving supply chain visibility and gaining a holistic view of the chemicals in products and processes, especially as increasing regulatory and consumer demand for transparency urges businesses to gather full chemical information. 

However, obtaining sufficient and complete information and handling the volume of work required remain key issues. Enhesa Sustainable Chemistry’s Supply Chain Connect solution can help companies address these issues by enabling them to: 

• Identify potential chemical hazards throughout the supply chain 

• Gather necessary data in a standardized and easily accessible format 

• Protect suppliers’ proprietary information to drive a higher response rate to confidential data requests  

By simplifying the process of requesting chemical data, a tool like Supply Chain Connect ensures information is gathered quickly, easily, and accurately. This enables companies to build positive and supportive supplier relationships to help meet compliance and sustainability goals.